17 - Earnings Per Share

We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to be paid cash dividends that are at least 10% higher than the cash dividends we pay on our Class B common stock. Accordingly, we use the two-class method for the computation of earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends declared and an allocation of remaining undistributed earnings using a participation percentage reflecting the dividend rights of each class.

We present below a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our Class A common stock:


	Year Ended December 31,
(in thousands, except per share amounts)	2017		2016		2015
Basic earnings per share:
Numerator:
Allocation of net income	$	5,879	$	24,885	$	17,155

Denominator:
Weighted-average shares outstanding		21,799		20,917		22,046

Basic earnings per share	$	0.27	$	1.19	$	0.78

Diluted earnings per share:
Numerator:
Allocation of net income	$	5,879	$	24,885	$	17,155

Denominator:
Number of shares used in basic computation		21,799		20,917		22,046
Weighted-average effect of dilutive securities
Add: Director and employee stock options		843		613		348

Number of shares used in per share computations		22,642		21,530		22,394

Diluted earnings per share	$	0.26	$	1.16	$	0.77

We used the following information in the basic and diluted per share computations for our Class B common stock:


	Year Ended December 31,
(in thousands, except per share amounts)	2017		2016		2015
Basic and diluted earnings per share:
Numerator:
Allocation of net income	$	1,237	$	5,916	$	3,835

Denominator:
Weighted-average shares outstanding		5,577		5,577		5,577

Basic and diluted earnings per share	$	0.22	$	1.06	$	0.69

During 2017, we did not include options to purchase 937,000 shares of our Class A common stock in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of our Class A common stock.